The global cannabis industry has been inhibited by regulatory restrictions for most of recent history, but the legal market has emerged rapidly as more governments legalize medical and recreational use. Due to the ‘shady’ image of the business, most banks, credit card companies, and payment providers won’t handle the money generated by the cannabis industry, even in places where it is completely legal. This leads to inefficient and costly solutions such as high bank fees and cash transactions, which only add to the shady image of the industry.
To address this problem, BitCanna will provide a decentralized payment network for the legal cannabis industry, by means of the BitCanna Coin (BCNA). BitCanna has already set up agreements with major companies in the European cannabis market, forming the BitCanna Alliance. The BitCanna Alliance works with legislators to solve the current paradox in the market. By implementing supply chain management and a trust & reputation layer, BitCanna aides legislators in creating a healthy and transparent cannabis market.
The first phase of the project is to create a decentralized payment network to solely serve the cannabis industry. The main goal is to provide an alternative payment solution for unbanked businesses that is more cost-efficient than the current payment options. This payment system will be built around the BitCanna token (BCNA) which is a digital currency that acts as a means of exchange and the unit of account on the BitCanna blockchain. The main net will go live directly after the ICO’s time limit is reached, November 1st 2018.
In practice, BitCanna envisions a decentralized payment network in which payments will run directly from the customer to merchants — no middleman. The BCNA token will be a decentralized digital currency that is secure, fast, easy to use and in compliance with local regulations. Since blockchain ledger records are immutable and transparent, this will be perfect for financial institutions looking to audit cannabis companies, as well as government institutions looking to properly tax marijuana businesses and regulate the industry.
In the second phase of development the mainnet will be integrated with the supply chain layer. The BitCanna blockchain will be expanded with track and trace monitoring functionalities, allowing traceability of the entire supply chain of cannabis, and cannabis-related products. The main goal of phase two will be to create a more efficient supply chain network for businesses and simultaneously build more trust, as well as a new level of transparency within the cannabis industry.